Mary has an income of $50 . She spends her entire money either on burgers or on cookies. The price of a burger is $10, and the price of a cookie is $5 . Which of the following consumption bundles can Mary afford, given her income?

Mainstream economists contend that, as stabilization tools:

A. discretionary fiscal policy is effective, but discretionary monetary policy is not. B. discretionary monetary policy is effective, but discretionary fiscal policy is not. C. both discretionary fiscal policy and discretionary monetary policy can be effective if appropriately used. D. discretionary fiscal policy and discretionary monetary policy cause more instability than they cure.

Compared to the efficient level of abatement, the benefit-based abatement standard

a. is twice as large in this case b. uses fewer resources c. is associated with higher water quality d. is more cost-effective